You are the manager of a local flower shop and you compete with one other flower shop in your area

Subject:EconomicsPrice:2.88 Bought3

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You are the manager of a local flower shop and you compete with one other flower shop in your area. You estimate the cross-price elasticity of demand between your flowers and your competitor's flowers to be 2.60. If your competitor decreases the price of her flowers by 10%, you should expect which of the following?

A. 26% decrease in the demand for your flowers

B. 26% increase in the demand for your flowers

C. 2.6% increase in the demand for your flowers

D. 2.6% decrease in the demand for your flowers